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TheCityUK comments on agreement reached in MiFiD / MiFIR Trialogue

TheCityUK welcomes the agreement in Trialogue on the Markets in Financial Instruments Directive and Regulation (MiFID/MiFIR) as a key step in achieving market reform in EU securities.

Chris Cummings, Chief Executive of TheCityUK, said:

We specifically welcome the decision by the Trialogue of the Council, Parliament and the Commission on a Third-Country Regime. This decision is significant as it establishes a workable regime for third country firms. It also safeguards access for EU investors to investments in third countries and access for EU issuers to capital from third countries, enabling international markets to function through a flow of capital and trade and allowing EU investors to benefit from global market growth.

“The decision on third countries clarifies that until such time as an equivalence decision on a third country supervisory regime has been made by the European Commission, the provision of services by third-country firms in the European Union will remain subject to the member state national regimes.

“Access to investment and finance outside the EU under the agreement includes investment in financial instruments in third country markets to deliver diversified long term value for EU investors, employing custodians, brokers, affiliates and asset managers in those markets using third country investment banks to manage and advise on IPOS and debt issuance in market, where local regulation requires the use of a local firm. This includes Hong Kong, where the agreement safeguards EU firms’ ability to simultaneously list in both an EU regulated market and Hong Kong, accessing capital and investors in both markets.

“The agreement also clarifies that as and when the Commission undertakes an equivalence decision in the future it should be outcome-based, should assess to what extent the respective third-country regulatory and supervisory framework achieves similar and adequate effects and also should meet the same objectives as the European Union legislation.